Jobs, Inc. has recently started the manufacture of Tri-Robo, a three-wheeled robot that can scan a home for fires and gas leaks and then transmit this information to a smartphone. The cost structure to manufacture 20,500 Tri-Robos is as follows. Cost Direct materials ($52 per robot) $1,066,000 Direct labor ($38 per robot) 779,000 Variable overhead ($7 per robot) 143,500 Allocated fixed overhead ($29 per robot) 594,500 Total $2,583,000 Jobs is approached by Tienh Inc., which offers to make Tri-Robo for $116 per unit or $2,378,000.

the question is incomplete, so I looked for similar questions (see attached image).

this is a differential analysis that compares two alternative situations:

                                     Make              Buy                 Net income increase

                                                                                    (decrease)

materials                     $1,066,000      $0                      $1,066,000

labor                              $779,000       $0                        $779,000

var. overhead                $143,500       $0                         $143,500

fixed overhead             $594,500    ($405,000)            $999,500

purchase price                   $0          $2,378,000         ($2,378,000)

total                            $2,583,000    $1,973,000           $610,000

If Jobs decides to purchase the Tri-Robos from Tienh, and it is able to avoid $405,000 in fixed cots, then its operating income should increase by $610,000.

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.

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